A Theory On the Tea Party Republicans and the Debt Ceiling, Part 2

Yesterday I wrote a quick post about how the Tea Party wants us to default:

Defaulting on our debt would make it much, much harder for the government to borrow in the future because investors would be much less reluctant to hold U.S. Treasuries.

Making it harder to borrow would make it harder for the government to spend money which, in turn, would require lower taxation.

A part of me thinks this is the logic behind the Tea Party Republicans. It makes sense in their twisted, anti-taxation minds.

Here is Bruce Bartlett today in the New York Times Economix section:

What I don’t think they understand is that there has been a movement under way for some years among right-wing economists and activists not merely to default on the debt, but even to repudiate it.

There are still many in the South, where the Republican Party is now based, whose hostility to the national debt traces back to those days.

In his 1987 essay, “The Ethics of Debt Default,” Buchanan made an argument often repeated by libertarians and Tea Party members: if the Treasury were to default, no one would ever lend it money again, thus imposing a balanced budget; the government could only spend as much as tax revenue permitted.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: